NAVY MOVES AGAINST FIRMS IN FRAUD CASE

WASHINGTON -- The Navy has initiated actions against more than a dozen individuals and companies involved in the federal inquiry into military procurement fraud, including the suspension without pay of a Navy employee who was indicted in the case last week, the Pentagon announced on Tuesday.

The Navy official, Stuart Berlin, employed by the Naval Air Systems Command, was previously reassigned with pay to a job that did not involve weapon procurement. He will be suspended until the charges against him are resolved, a Pentagon spokesman, J. Daniel Howard, said.

Berlin, reached at home, said he had no comment.

The actions announced on Tuesday included the start of procedures that could lead to barring individuals and companies from future government contracts.

Among those whose cases were referred to the Navy Debarment Committee for consideration was Melvyn Paisley, a consultant and former assistant Navy secretary. The referral was the first step taken by the Pentagon against Paisley, whose involvement in the case has been known for seven months, but who has not been indicted.

Among the other measures that were announced, the Navy has delayed awarding a contract for electronic test equipment while it considers information contained in the guilty plea of the Hazeltine Corp., which is bidding on the contract.

Hazeltine, a subsidiary of Emerson Electric, has also been referred to the Navy board to see whether it should be barred as a contractor.

Two consultants, William Parkin and Fred Lackner, both indicted on Friday, were also referred to the Navy Debarment Committee, while Teledyne Inc., a company that was indicted, is under review by the Defense Logistics Agency to see if it should be barred.

The Navy took similar actions against several companies, including Norden Systems division of the United Technologies Corp., ORI Inc., a subsidiary of Atlantic Research Corp., and three smaller companies: Software Products, TEM Associates, and Executive Research Associates.